Making Dollars and Sense…the Benefits of Parks and Recreation

1. Making Dollars and Sense…the Benefits of Parks andRecreation ART THATCHER, MPA, CPRP PRINCIPAL

2. LearningOutcomes • Benefits of Parks, Recreation and Open Space bringto: • Ourindustry • Ourcommunities • Ourcitizens

3. Philosophical Basis- Parks and Recreation byGovernment • Beginning in the late 1800’s, public parks and recreation began as a social service and a problem solver in U.S. communities • Government has historically taken responsibility to provide “for those who are unable to provide for themselves” • Public park and recreationagencies have traditionally used tax money as their primary revenuesource Merry-go-round, ca. 1918-1920. Source: Library of Congress Prints &Photographs

4. Philosophical Basis What has beenadded • Public parks and recreation agencies are now employing corporate or business best practice models to help sustainsystems • Q: “How much subsidy should be directedto • a service if an individual derives a greater benefit than the community as a whole?”

5. Why is thisImportant? • Appropriate use of taxsupport • Greater dependence on revenue generation and alternativefunding • Organizationalsustainability • Allows us to make strategic and justifiable decisions based upon logical models and soundmethodologies • Allows us to “tell our story” and be accountable for and responsible withresources

6. Financial ResourceAllocation PhilosophyBenefits • Fair, equitable, and simple: systematic cost recovery and subsidy allocationstructure • Based on agency values, vision andmission • “Buy-in” for cost recovery goals, subsidy allocation and pricingmethods • Implementationguide • Tool fordecision-making

7. Economic Impact Analysis • Who is fundingwhat? • Direct impact–revenue and employment • Total revenue from residents and fromnon-residents • Percentage from in and out ofcommunity • Indirect economicimpact • Expenditures by visitors on goods and services from outside the community besides directrevenue • On average visitor spending pertrip • The total annual economic impact in dollars andjobs

8. Source: NRPA: The Economic Impact of LocalParks

9. Local and regional public parkagencies: • Directly provided more than 356,000 jobs in the United States during2013 • Equating to nearly $32.3 billion in operationsspending.

10. Operations spending by parkagencies • Generated nearly $80 billion in total economicactivity • Boosted the gross domestic product (GDP) by $38.8billion • Supported nearly 660,000 jobs that paid in excess of $24 billion in salaries, wages andbenefits.

11. Local and regional park systems spent an estimated $22.4 billion on capital programs, leading to about: • $59.7 billion in economicactivity • $29.2 billion to theGDP • $19.6 billion in laborincome • More than 340,000jobs.

12. In total, the nation’s local and regional public park agencies spent nearly $54.7 billion in 2013, leadingto: • $139.6 billion in economicactivity • Just under $68 billion contribution to the GDP • Nearly 1 million jobs that generated labor income of $43.8 billion in2013.

13. Source: NRPA: 2017 Agency PerformanceReview

14. Economic impact per resident in Maryland:$461

15. Outdoor recreation industrygenerates: • Consumer spending: $646Billion • Federal tax: $39.9Billion • Direct jobs: 6.1Million • State and local tax : $39.7Billion Outdoor Industry Association

16. What does that look like inMaryland? • Consumer spending: $9.5Billion • Wages and salaries: $2.8Billion • Direct jobs:85K • State and local tax : $686Million Outdoor Industry Association

17. Recreation’s Economic Contributions (REC)Act • Outdoor Recreation Jobs and Economic ImpactAct • – signed into law December 8,2016 • 142 million Americans recreate outside eachyear • REC Act recognizes the outdoor recreation industry’s enormous contribution to the US economy • Outdoor economy: $646 billionannually • Employs: 6.1 millionannually

18. According to the World Travel and Tourism Council adventure travel is the industry’s fastest growing sector. They reported that 98 million Americans, half of all US Adults, took an adventure getaway within the last five year.

19. Outdoor Recreation Foundation Topline Report http://www.outdoorfoundation.org/ research.participation.2016.topline. html

20. Growth in OR 2012 -2015 Outdoor Recreation Foundation Topline Report http://www.outdoorfoundation.org/research.participation.2016.topline.html

21. NationalTrend: FitnessSports Participation Rates by Generation Source: 2016 Participation Report: Physical ActivityCouncil

22. HPElaAyDOEuRtsTiOdeB, ESuPpLpAoCrEtDthHe EERcoEnomy TAKE IT OUTSIDE FOR AMERICAN JOBS AND A STRONGECONOMY

23. TAKE IT OUTSIDE FOR AMERICAN JOBS AND A STRONGECONOMY

24. HAENAaDtEioRnaTlOEBmEplPoLyAeCrEDHERE TAKE IT OUTSIDE FOR AMERICAN JOBS AND A STRONGECONOMY

25. HAEnAODvEeRrlToOokBeEdPELcAonCoEmDicHEGRiaEnt TAKE IT OUTSIDE FOR AMERICAN JOBS AND A STRONGECONOMY

26. Changes in Sport Activity Participation 2013 to2014 2.7 2.5 Fitness Individual Indoor Gaming Open Water Outdoor PersonalContact Shooting Snow Team Wheel 1.3 0.8 0.5 0.4 1 -0.4 -1.2 -2.1 -2.6 Source: National Sporting Goods Association, Sports participation in the United States 2015 surveyreport

27. Ten-Year History of Sports Participation (in millions) 2005-2014 National Sporting Goods Association, “Historical Sports Participation 2015Report”

28. AssuringSustainability Financial/ Economic Management andBalance Social/ Recreation Environmental Conservation/Passive MixedUse Active

29. Typical Local Governmental Amenities with Potential TourismDraw • Parks &Trails • Agri-tourism • Markets &Events • Unique NaturalFeatures • Beaches • Waterfront • Art /Cultural • Historical • TournamentFacilities • Special Draw /Extreme Facilities

30. How we are doing it: ResponsibleTourism "In a growing number of destinations, the business leaders, citizens, and government authorities are realizing that safeguarding their distinct sense of place – cultural assets, natural habitats, historic feature, scenic appeal – are essential for reaping the benefits of responsible tourism. A trend to encourage." —Jonathan Tourtellot, Geotourism Editor,National GeographicTraveler

31. 2016: What we areplanning • Since 2013, the percentage of respondents who have any construction plans has grown from 62.7% to 66.4% In2016: • • 25.7% -New • 47.6% -Additions • 28.6% -Renovations • “One-stop” indoor recreation facilities to serve allages. Source: 2017 State of the Industry, RecreationManagement

32. 2016: Top planned facilityfeatures • Community gardens(32.9%) • Disc golf courses(31.4%) • Fitness trails or outdoor fitness equipment(30.9%) • Splash play areas (29.4%) • Golf courses(21.5%) • Waterparks(18.2%) • Ice rinks(17.8%) • Bike or BMX parks(10.3%) • Source: 2017 State of the Industry, RecreationManagement • Playgrounds(83.7%) • Park shelters(83.5%) • Park restrooms(77.3%) • Outdoor sports courts(70.9%) • Community centers(55.5%) • Bike trails(50.1%) • Skateparks(41%) • Dog parks(34.8%)

33. Earth Economics,2011

34. Earth Economics, “Economic Impact of Metroparks Tacoma Ecosystem Services”, December 2011

35. NRPA American’s Engagement with ParksSurvey

37. nIIc, a iviti berHas) (Per-cen 1% 00pa.rt,da 6%

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39. Walkability is no longer something that is merely nice to have or a luxury; it is a key to economiccompetitiveness. Millennials and seniors are leading the charge. A Transportation for America survey shows that 80% of 18- to 34-year-olds want to live in walkable neighborhoods, and an AARP survey found that an average of 60% of those over 50 want to live within one mile [0.6 km] of daily goods andservices. Walkability even has a role in the innovation and startup economy, with a majority of venture capital going to center cities or walkablesuburbs. Urbanland: Making the Economic Case forWalkability

40. The benefits of walkability are now well known. They include lower rates of obesity and associated chronic diseases; reduced emissions of greenhouse gases; improved sustainability and resilience; and evenincreasedhappiness. But it is really the economic story that has pushed walkability—and place—into the real estatelimelight.

41. Step ItUp! U.S. SurgeonGeneral

42. 4 in 5 Americans agree local parks are worth the average of $70 spent annuallyper person NRPA: Broad-Based Support for Local Recreation and ParkServices

43. Cost Recovery – what isit? Amount of the annual operating budget cost that can be offset by funding other than General Fundtaxpayer investment/subsidy or other tax subsidy (whether derived from property, sales, or othersources). ResourceAllocation How we use limited tax dollars and alternativesources offunding.

44. Cost Recovery andSubsidy =100% 60% 40% =100% 80% 20% 100% +20% National average overall – 29% (2016 NRPA FieldReport)

45. Government is expected to servethose who “pick up thetab” $ Subsidy/GeneralFund $ Taxes $ Fees andCharges $ Programfees $ Permits $ Rentals $ AlternativeFunding $ Grants $ Donors $ Sponsors “Those who invest expectto benefit” “Those who pay expectto benefit” “Those who contributeexpect tobenefit”

46. PyramidMethodology • Management tool utilized byagencies across thecountry • Allows logical determinationof: • howresources areused • subsidy/cost recoverygoals • future feesand charges • Articulates thelevel of benefit that servicesprovide • Raises the issue of coreservices • Provides justification fordecisions

47. Grounded in a primary “benefit” filter andsecondary filters Helps answer the question, “Whereshould subsidy be used?

48. The Foundational Level of thePyramid Mostly CommunityBenefit (Alltaxpayers) Benefits the community as awhole: Has positive economic impact, increase public safety, address social needs, and enhance basic quality of life of all residents.

49. SecondaryFilters • Access/type ofservice • Organizationalresponsibility • Historicalexpectations • Anticipatedimpacts • Socialvalue

50. OpenDiscussion • Your local impacts • Potentialresponses